Thump, thump. Thump, thump. Listen closely, and you just might hear a faint heartbeat in the jumbo mortgage market in Southern California, almost two years after the market for higher-end homes lost its pulse amid the implosion of the non-conforming mortgage market.
Shifting sales activity away from a heavily-discounted glut of foreclosures in the Southland and a re-emergence of at least some sales activity among homes in the $500,000-plus range helped push the median price of a Southern California home upward in May for the first time since July 2007, according to data released Wednesday by San Diego-based MDA DataQuick.
SoCal home sales volume rose for the 11th consecutive month in May, the highest total for May since 2006, as foreclosures continued to fuel the market for sales. MDA DataQuick said that a total of 20,775 new and resale houses and condos closed escrow in San Diego, Orange, Los Angeles, Ventura, Riverside and San Bernardino counties last month. That was up 1.3 percent from 20,514 in April and up 22.8 percent from 16,917 a year ago. Source: nuwireinvestor.com
The summer season historically brings buyers resulting in a temporary increase in sales. However, the Southern California median prices have risen, an increase that has not been seen in at least a year. As the foreclosure inventory declines and more buyers join the market, it is expected that a positive outcome will result.
